Good morning! It's Friday, Feb 9, 2024, which means that it's a perfect time to grasp the structuring of blended finance. This is important, as it's key to understanding the presently ongoing greatest (planned) heist of all time.
Today's sourced document comes straight from the Global Environment Facility, which means there couldn't possibly be a more legit source document on the topic. And as I've had comments that prior material was complex, I took the liberty to add numbering with the arrows, which hopefully should ease comprehension, as this is a complex topic by design.
First off (1) - this very much is a legit GEF document, and it was (2) released in 2017. And (3) makes clear that this very much is the GEF's turf; land, forests, water, oceans... ie, reserves in the UNESCO Biosphere Reserves (or heritage sites).
We soon learn that regardless of the billions and utter billions of taxpayer 'investments', (4) it simply is not enough. In 2017, we were $250bn short! Financing is done via debt (bonds), equity (shares), and guarantees (guaranteed interest payments; collateral). All of this (5) is - allegedly - a mix of philanthropic, private, and public capital. And we see (6) that the objective here is to make money from 'ecosystem services' (which - although unlisted - also include carbon credits).
The next slide is the first of primary importance, because it (7) outlines that a given project can only generate 6% yield, but (8) private equity demands 7%, meaning (9) the public (taxpayer) will simply have accept a 2% return, which in short translates to a colossal transfer of taxpayer funding to private equity.
And the key to understanding how said 'structure' allows this brilliant investment (from the perspective of private equity, anyway), is to grasp that equity dividends are higher than bond interests, and consequently, private equity receives equity, and the public receive bonds.
However, we still have the issue of risk, because private equity doesn't like losing money. To avoid that, (10) the public will be 'junior' (or 'mezzanine') in the relationship, while (11) private equity will be senior. That ensures that the taxpayer will lose every penny of their investment, before private equity loses even a single one.
However, (12) should said investment collapse regardless, private equity will still likely demand security, and this could happen through either a transfer of the underlying collateral to said private equity (ie, if invested in land, this land could now become the legal possession of said private equity). Other sources suggest private equity might also demand a guarantee of steady interest payments regardless, which essentially would mean the public taxpayer would have to stomp up interest payments, should the business collapse.
In other words, blended finance is nothing short of a colossal scam, structured much in line with those ultimately collapsed CDOs back in 2008.
But this time, with the taxpayer - ie, you - the sitting duck.
... and with that said, do recall that the public (taxpayer) capital is the overwhelming amount. Most documents I've read (many!) place private equity stake in the range of 5-20% of total amount - largely depending on geographical region.
... also keep in mind that the capital they seek to bridge will come through eliminating every subsidy which benefits... you. Meaning price spikes for you.
Are you aware that they are monetising carbon credits from UNESCO Biosphere Reserves, eventually to be used by Natural Asset Companies, ensuring 'offsetting' will be more pricey for farmers, and hence your food prices?
Vietnam: '... the prime minister responded firmly that he did not consider PES to be feasible or desirable... possibility of the poor being penalized due to additional costs being passed on to consumers through increased water, energy and food prices'
I decided to read a recent report by the @ecb to see how many outright lies and distortions they could cram in on just a few pages, and it's quite impressive.
Decided to do the final pages as well. Shameless lies throughout.
'Research in the complex area of nature-related transition risk for financial stability is still at an early stage...findings show that the economy has a significant impact on nature'
It's FRAUD.
This chap announced the report -
'Elderson played a key role in the creation of the Network for Greening the Financial System (NGFS) of which he is current chair'
He should know that 'ecosystem service valuation' is impossible, yet he pushed forward.
so obviously the objective. an economy, 100% managed via a digital twin, powered by global surveillance, using digital ids and CBDCs linked to climate credit allowances to control people in their 15-minute sh*tholes